South Korea Extends Hanwha Antitrust Restrictions to 2029 Over 60% Naval Market Share Risk

Context In 2023 Hanwha completed a purchase of Daewoo Shipbuilding & Marine Engineering (DSME), merging a major shipyard with its own aerospace and systems divisions. The Korea Fair Trade Commission (KFTC) immediately imposed conditions to prevent the combined entity from abusing its new scale. After a three‑year review, the KFTC concluded the same competitive concerns persist.

Key Facts - The KFTC announced on April 28 that it will keep the 2023 antitrust measures in place for another three years, marking the first time the agency has extended merger‑related restrictions. - Regulators warned that Hanwha’s combined share of surface‑vessel and submarine contracts could exceed 60% after the DSME deal, a level that threatens fair competition. - The 2023 measures prohibit Hanwha from offering discriminatory prices on ship components, from refusing legitimate technical‑information requests, and from sharing competitors’ trade secrets. - Restrictions remain on eight component categories and on bidding practices, but were lifted for friend‑or‑foe identification systems and integrated machinery‑control markets where new rivals have emerged.

What It Means The extension signals that the KFTC believes Hanwha still holds a structural advantage that could distort future naval contracts. By banning price discrimination and information hoarding, the regulator aims to keep the bidding field open for rival shipbuilders and component suppliers. Hanwha’s ongoing international expansion—such as stakes in Austal and the acquisition of Philly Shipyard—will now proceed under tighter oversight at home.

Watch for the KFTC’s next review, scheduled before the 2029 deadline, which could either lift the curbs or add further extensions if market dominance remains unchecked.